How Much Does Workers’ Comp Insurance Cost for a Small Business?
How Much Does Workers’ Comp Insurance Cost for a Small Business?
Average Workers’ Comp Costs, Factors, and How to Save
| Provider | Annual Cost | Monthly Cost |
|---|---|---|
| The Hartford | $1,032 | $86 |
| Insureon | $542 | $45 |
How Much Does Workers’ Comp Insurance Cost for a Small Business?
WorkComp Options: Your Specialists for Affordable, Tailored Workers’ Compensation Solutions
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance protects your business and employees if someone gets hurt or sick on the job. It covers medical expenses, lost wages, rehabilitation, and even death benefits. Nearly every state requires businesses with employees to carry workers’ comp.
Key Coverage Areas:
- Medical expenses (doctor visits, ER, surgery)
- Wage replacement (about 2/3 of gross pay)
- Disability benefits
- Vocational rehabilitation
- Death benefits
Why Small Businesses Need Workers’ Comp
Operating without workers’ comp can result in steep fines and legal exposure. Even if your state doesn’t require it for very small teams, you’re still vulnerable to lawsuits and uncovered claims. Having workers’ comp shows your employees you care and protects your business’s reputation.
Average Workers’ Comp Costs for Small Businesses
| Provider | Average Annual Cost | Average Monthly Cost |
|---|---|---|
| The Hartford | $1,032 | $86 |
| Insureon | $542 | $45 |
| National Avg | ~$1 per $100 payroll | Varies |
| CoverWallet | $2,000–$3,000 | $167–$250 |
| WorkComp Options | Save up to 20%+ | Custom, ask for quote |
These are just estimated. Actual rates vary by state, industry, payroll size, and claims history.
Factors Influencing Workers’ Comp Premiums
- State Laws: Each state sets its own rules, rates, and required benefits.
- Payroll Size & Number of Employees: Premiums are calculated per $100 of payroll. Larger payroll = higher premium.
- Industry & Risk Level: Construction, manufacturing, and trucking pay much more than accounting, IT, or consulting.
- Claims History: More claims (and severe claims) mean higher rates. Staying claims-free earns discounts.
- Employee Classification: Misclassifying workers can lead to overpayment or penalties. Use the correct NCCI class codes.
- Experience Modifier (EMR): After several years, your business earns an EMR score based on claims record. Below 1.0 = discount, above 1.0 = surcharge.
Workers’ Comp Costs by State
| State | Avg. Monthly Cost | Cost per $100 Payroll |
|---|---|---|
| Alabama | $119 | $0.91 |
| California | $62 | $1.34 |
| Georgia | $55 | $0.89 |
| Illinois | $45 | $0.82 |
| New York | $38 | $1.15 |
| Texas | $32 | $0.41 |
| Florida | $55 | $1.04 |
| Massachusetts | $32 | $0.61 |
| Montana | $74 | $1.48 |
| Average | $45 | $1.00 |
For a detailed, state-specific quote, contact us or see our state guides.
Industry-Specific Insurance Rates
| Industry | Avg. Monthly Cost |
|---|---|
| Finance/Accounting | $33 |
| IT/Technology | $34 |
| Consulting | $37 |
| Healthcare | $54 |
| Retail | $83 |
| Food & Beverage | $107 |
| Cleaning Services | $147 |
| Manufacturing | $150 |
| Landscaping | $177 |
| Construction/Contracting | $254 |
The riskier the work, the higher the premium. Our specialists help you classify jobs correctly to avoid overpaying.
How to Estimate Your Workers’ Comp Cost
Basic Formula:
(Annual Payroll / 100) x State Rate x EMR = Annual Premium
Example:
- Payroll: $100,000
- State Rate: $1.20 (per $100 payroll)
- EMR: 1.0 (average risk)
- Premium: ($100,000 / 100) x $1.20 x 1.0 = $1,200
Use our free quote request form for a precise, customized estimate.
Ways Small Businesses Can Save
- Implement Safety Programs
- Regular safety training, signage, and inspections
- Documented policies earn discounts in many states
- Promote Healthy Workplace Culture
- Wellness incentives (flu shots, gym memberships)
- Lower claim frequency = lower premiums
- Correctly Classify Employees
- Avoid paying higher rates for low-risk staff
- Review job roles yearly
- Review Your Policy Annually
- Adjust coverage for changing payroll or staff
- Take advantage of new discounts
- Offer Return-to-Work Programs
- Get injured employees back on the job in modified roles
- Shop and Compare Quotes
- Use brokers like WorkComp Options to access 50+ providers
- Request breakdowns to compare apples-to-apples
How WorkComp Options Helps You Save
.
Why Choose Us?
- Access to 50+ providers for competitive rates
- Savings up to 20% or more
- Easy payment plans, including pay-as-you-go
- Coverage for hard-to-place risks (PEOs, staffing, home health, construction, trucking, etc.)
- Expertise in class codes and audit review (prevent overpayment)
- Claims-free and safety program discounts
- Real, human customer service
- Free consultation and quote in 15 minutes
Apply Online: Get a Quote in Minutes
Industries We Serve:
- Construction & Contractors
- Home Health & Nursing
- Staffing Agencies
- Retail, Manufacturing, Warehousing
- Trucking, Transportation
- Security Guards
- Professional Services
- And more!
FAQ
Q: How much does workers’ comp cost per employee? A: Varies by state, industry, and payroll. Typical rates range from $0.41 (Texas) to $2.14 (Wyoming) per $100 of payroll. Industry risk and claims history matter most.
Q: Do I need workers’ comp if I only have one employee? A: Most states require it for any employees; exceptions exist but coverage is recommended.
Q: What is a pay-as-you-go plan? A: Premiums are calculated on actual payroll, not estimates, so you pay only for what you use. Ideal for seasonal or fluctuating payrolls.
Q: What are NCCI class codes? A: National codes that identify job risks. Accurate classification is critical for correct premium calculation.
Q: How do I get a quote? A: Apply online or call our team for a free quote and consultation.
Request Your Free Consultation or Quote
Save money, reduce risk, and get expert advice.
Apply for Workers’ Compensation | Schedule a Free Consultation
References & Data Sources
- The Hartford, Insureon, Forbes, QuickBooks, WorkCompOne (see linked tables above)
- State-specific guides for Georgia, New York, California, Texas, Florida, and more
Need More Help?
Call (678)810-0181 or email admin@workcompoptions.com
© 2025 WorkComp Options by Solutionix, Inc. | All Rights Reserved
